Lancer, Inc., starts a subsidiary in a foreign country on January 1, 2010. The following...

Lancer, Inc., starts a subsidiary in a foreign country on January 1, 2010. The following account balances for the year ending December 31, 2011, are stated in kanquo (KQ), the local currency:

The following exchange rates for $1 are applicable:

Lancer is preparing account balances to produce consolidated financial statements.

a. Assuming that the kanquo is the functional currency, what exchange rate would be used to report each of these accounts in U.S. dollar consolidated financial statements?

b. Assuming that the U.S. dollar is the functional currency, what exchange rate would be used to report each of these accounts in U.S. dollar consolidated financial statements?